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Bitcoin (BTC) returned to $79,000 on Friday after key US inflation data broadly conformed to expectations.Key points:US core CPI inflation data gained 0.3% month-on-month, surpassing expectations of 0.2%.Implied probabilities of an interest-rate hike by the Federal Reserve at the Sep. 16 meeting rose to 85%.US bond yields will cause Bitcoin pain amid Fed policy tightening, QCP analysis warns.Bitcoin jumps 3% as “nervous” market digests CPI numbersData from TradingView showed renewed BTC price volatility ensuing after the August release of the Consumer Price Index (CPI), which came in at 3.4% year-on-year.BTC/USD one-hour chart. Source: Cointelegraph/TradingViewAfter initially dropping to $76,000, BTC/USD quickly reversed upward, gaining more than 3% on the day.The move echoed US equities, which also turned green after a weak start to the session. This was catalyzed by CPI conforming to expectations only a day after the Producer Price Index (PPI) overshot. The S&P 500 was up 1% at the time of writing, while the tech-heavy Nasdaq Composite Index gained 1.1%.S&P 500 one-hour chart. Source: Cointelegraph/TradingViewUS bond yields also saw snap volatility. On the back of the CPI print, the 30-year yield whipsawed, first reaching its highest levels since June 2004 before falling to 5.309%.“This is a nervous market,” trading resource The Kobeissi Letter summarized in a response on X.US 30-year bond yield one-hour chart. Source: Cointelegraph/TradingViewAs WTI crude oil continued to circle $100 per barrel, the impact of the expanding US-Iran war and associated oil-supply squeeze was noticeable in the CPI numbers.“The index for gasoline rose 3.9 percent in August, accounting for over one third of the monthly all items increase. The index for energy increased 2.1 percent over the month,” an official news release from the Bureau of Labor Statistics (BLS) confirmed.The release also reported that core CPI increased by 0.3% in August, 0.1% more than anticipated.US CPI 12-month % change. Source: BLSIn response, traders doubled down on bets that the Federal Reserve would raise interest rates by 0.25% at its Sept. 16 meeting. The latest data from CME Group’s FedWatch Tool showed odds of such an outcome rising to 85% on Friday, increasing from 60% a week ago.Fed target-rate probability comparison for September FOMC meeting (screenshot). Source: CME GroupFed officials are known to be split on the correct path for policy, with governor Christopher Waller last week indicating that he would be inclined to hold rates in their current 3.50-3.75% range should inflation data show at least “some signs of disinflation.”“What’s the cost of waiting one meeting? Hiking 25 basis points, one meeting right now, is not going to bring the CPI down to 2%,” he told Reuters.Analysis: Yield surge to become Bitcoin headwindDiscussing the implications of high bond yields going forward, trading company QCP Capital warned that Bitcoin bulls had little to look forward to. This is despite BTC/USD surging 25% in August after the US Treasury announced that it would step up debt buyback interventions.Related: Bitcoin buyers wary of July sub-$58K floor amid onchain data ‘anomaly’“The rise in US yields this year has been driven increasingly by tighter policy expectations and a risk premium common to both stocks and bonds, rather than by growth,” it wrote in its latest analysis. “This is the worst mix for Bitcoin: a competing 5% risk-free rate without the nominal-growth impulse that usually accompanies yield moves. It directly undercuts the narrative that carried Bitcoin from $63,000 to $82,000 in the second half of August, which leaned on the idea of a Treasury liquidity put providing structural support.”QCP argued that Bitcoin would ultimately benefit from these developments, but only once buyback operations have had time to inject sufficient liquidity into markets.

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Bitcoin (BTC) buyers avoided “buying the dip” as BTC price fell to $57,800 in July, analysis reports.Key points:The Bitcoin HODL Waves metric showed that buyers did not rush to enter the market as BTC/USD fell below $58,000 at the start of July.A single whale may have been among the only dip-buyers at the time, said analyst Willy Woo.Analysis continued to warn that the bear market shows no concrete signs of structural shift based on current price action.Willy Woo: Bitcoin bottom buyer could be lone whaleData from Bitcoin’s HODL Waves metric shows an unusually muted reaction to the most recent macro lows.HODL Waves group the BTC supply by how long coins have remained dormant in their wallets, plotting each group over time to create the chart’s signature wave-like pattern. The newest supply, coins dormant between one and seven days, offers insight into investor buying activity following key BTC price events.On July 1, BTC/USD briefly dropped below $58,000, reaching its lowest levels since September 2024. On that day, the portion of the supply dormant between one and seven days stood at 1.97%, per data from Look Into Bitcoin. The figure increased only marginally in the days after, reaching a mere 2.35% on July 5.Bitcoin HODL Waves data. Source: Look Into BitcoinFor onchain analyst Willy Woo, this lack of onchain movement stands out among long-term BTC price lows. Previously, he noted, buyers rushed to buy new lows — a knee-jerk reaction absent in July.“Whoever bought the bottom did it slowly. Possibly even a single whale,” he wrote in a post on X this week, describing the event as an “anomaly.”Woo acknowledged that the interpretation was not infallible, with institutional investment vehicles possibly impacting the HODL Waves data.“I haven’t found any other thesis to explain the anomaly apart from slow steady buying by all investors involved this implies it’s a handful of buyers because if it was many they tend to act like a herd around price action and create spikes in the buying pattern,” he added.Misgivings over bear-market floor remainThe findings add to the debate around whether July marked Bitcoin’s latest bear-market bottom.Related: Bitcoin bear market ‘over’ as price metric copies 2023 recovery: CryptoQuant CEOAs Cointelegraph reported, opinions diverged significantly as BTC/USD rebounded above $80,000, with previous BTC price cycles dictating the need for a new macro low in the coming months.In his latest analysis, trader and analyst Rekt Capital warned that the structure of the bear market ostensibly remains intact in the form of a series of lower highs within a broader downtrend.“At this very moment, Bitcoin is positioned for a repeat of bearish price history. However, Bitcoin has a few more days to turn things around before the new Weekly Close, if it can. A Weekly Close below ~$78300 could set price up for a breakdown like in May,” he wrote on Thursday.BTC/USD one-week chart. Source: Rekt Capital on X.comAugust, meanwhile, saw a rebound in buyer appetite, with the US spot Bitcoin exchange-traded funds (ETFs) seeing $3.8 billion in net inflows over a three-week period.

Bitcoin (BTC) dipped below $77,000 around Thursday’s Wall Street open as risk assets faced resurgent macro headwinds.Key points:Bitcoin saw downside on the back of higher-than-expected US PPI inflation data, which hit 5.4% in August.Middle East strikes sent WTI crude oil over $100 per barrel for the first time since May.The US 30-year bond yield shrugged off a $6 billion buyback operation to hit its highest level since June 2007.US bond yields surge despite $6 billion interventionData from TradingView showed BTC/USD on track for 2% losses on the day, following weakness in US equities.BTC/USD one-hour chart. Source: Cointelegraph/TradingViewOngoing escalation in the Middle East fueled a fresh surge in oil prices, with WTI crude passing $100 per barrel for the first time since May 21. Brent crude passed $105 per barrel on the day, nearing a new 16-week high.CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingViewAgainst a backdrop of increasing inflation due to higher oil prices, markets also faced a fresh breakout in long-dated US bond yields. These came despite the Treasury executing the first of its stepped-up debt buyback operations and repurchasing $6 billion worth of Treasurys on Wednesday. The US 30-year yield reached 5.353% on the day, a level last seen in June 2007, while the 10-year yield hit its highest levels since November 2023 at 4.924%.US 30-year bond yield one-month chart. Source: Cointelegraph/TradingViewCommenting, trading resource The Kobeissi Letter warned of knock-on effects from high borrowing costs for both government and consumers.“The bond market is quite literally fighting the US Treasury,” it wrote in a reaction on X.Hot US PPI data adds to crypto’s macro headacheThe August print of the Producer Price Index (PPI) underscored increased inflation, coming in at 5.4% year-on-year, 0.1% higher than expected. July’s headline PPI print was likewise revised higher.Related: Bitcoin sell-side risk returns to rare lows as $80K sellers fade from view“The index for final demand less foods, energy, and trade services rose 0.3 percent in August after moving up 0.4 percent in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services advanced 4.7 percent,” an official news release from the US Bureau of Labor Statistics (BLS) stated.US PPI one-month % change. Source: BLSMarket expectations of interest-rate hikes from the Federal Reserve jumped on the data. CME Group’s FedWatch Tool showed the odds of a 0.25% hike at the Fed’s Sept. 16 meeting at 69.8% at the time of writing versus 61.2% the day prior.Fed target-rate probability comparison for September FOMC meeting (screenshot). Source: CME GroupAs Cointelegraph reported, concerns over Fed policy tightening had already increased on the back of stronger nonfarm payrolls data. Friday will see the release of another key US inflation report, the Consumer Price Index (CPI), which will form the last major inflation print before the Fed rate decision.On Thursday, the European Central Bank enacted its own 0.25% hike, the second such move in 2026.

US-listed spot Bitcoin exchange-traded funds (ETFs) recorded $120.2 million in net outflows on Wednesday, bringing withdrawals across the first two sessions of the holiday-shortened week to $166.8 million, according to Farside Investors data. The ARK 21Shares Bitcoin ETF (ARKB) led Wednesday’s withdrawals with $78 million, followed by Grayscale’s Bitcoin Trust ETF (GBTC) with $27.2 million and BlackRock’s iShares Bitcoin Trust ETF (IBIT) with $19.5 million. Morgan Stanley’s Bitcoin Trust (MSBT) was the only fund to record inflows, adding $4.5 million.Wednesday’s withdrawals followed $46.6 million in net outflows on Tuesday, marking the category’s first back-to-back outflow days since a three-day run ended on Aug. 14. Across the two sessions, GBTC lost $92.7 million, while ARKB and IBIT recorded net redemptions of $69.9 million and $8.8 million, respectively. The two-day pullback erased about 4.4% of the $3.8 billion attracted during the funds’ strongest three-week stretch of 2026. Bitcoin ETFs have recorded about $55 billion in cumulative net inflows since their launch, while their combined 2026 net flows amount to about $1.07 billion in outflows, according to Farside Investors.Ether and Solana ETFs return to inflowsMeanwhile, US spot Ether ETFs attracted $34.7 million on Wednesday after recording $24.3 million in withdrawals on Tuesday, leaving the funds with $10.4 million in net inflows for the week. BlackRock’s ETHB led Wednesday’s Ether ETF inflows with $22.9 million, followed by its ETHA fund with $9.7 million. The 21Shares TETH fund added $2.1 million, while the remaining Ether ETFs reported no net flows.Related: Bitcoin SOPR metric sees longest profit run of 2026 as new analysis challenges bear marketSpot Solana ETFs also reversed Tuesday’s outflow of about $700,000, attracting $11.2 million on Wednesday and bringing their two-session total to $10.5 million in net inflows. All Wednesday inflows went to Bitwise’s BSOL. Hyperliquid ETFs recorded net outflows for a second session, losing $5.3 million Wednesday after $13 million in Tuesday outflows, bringing the week’s total outflow to $18.3 million.The mixed ETF flows came as Bitcoin traded near $78,000 on Thursday, down from about $79,700 when the earlier three-week inflow figures were reported. Ether traded around $2,470, while Solana hovered near $101, according to CoinGecko.Magazine: 10 of the greatest unsolved crypto mysteries

Bitcoin (BTC) sell-side risk remains near historic lows as August profit-taking cools, new data shows.Key points:Bitcoin’s sell-side risk ratio fell to seven from 16 in September, placing it among its lowest-ever readings.Selling pressure eased while Bitcoin held most of its 25% August gains.Bitcoin ETF investors have spent 229 sessions below their aggregate breakeven level near $86,000.Bitcoin hodlers are “selling less” in September, Glassnode saysIn the latest edition of Glassnode’s The Week Onchain newsletter, the crypto analytics platform said Bitcoin’s sell-side risk ratio (SSRR) had reset lower.Sell-side risk sums total onchain realized profits and losses and divides that figure by Bitcoin’s realized market cap. The result is a snapshot of the US dollar value realized over a given period relative to realized cap.Glassnode describes lower values as signals of “macro market bottoms, accumulation phases and relatively low sell-side risk environments.”SSRR reached 16 as Bitcoin’s price hit multimonth highs above $80,000 in late August. As of this week, however, the metric has more than halved to 7, one of the lowest readings on record.Bitcoin SSRR data. Source: GlassnodeGlassnode said the August Bitcoin price rebound had “drawn little supply,” as measured by onchain activity.“At the July 2025 and October 2025 highs the same measure spiked to 35 and 23 basis points. Only a small share of days in the past year have run lower than today,” it noted.Data also shows that long-term holders — defined as wallet entities that hold a UTXO without spending it for at least six months — are realizing profits onchain at a lower rate this month.“Long-term holders’ share of realized profit has fallen to 47% from 88% at the August peak, and September’s realized profit spike on September 3, 2026 was under half the size of August’s,” Glassnode continued. “The sellers this month are recent buyers, and even they are selling less.”Bitcoin ETF buyers eye breakeven pointThe SSRR reading may ease concerns that even a modest Bitcoin price correction could trigger panic selling.Related: New Bitcoin whales spark sell-side risk as unrealized gains hit $9BBitcoin investor cohorts have returned to aggregate profit after Bitcoin reclaimed $80,000, potentially increasing the temptation to sell if the price retraces further. As Cointelegraph reported, the spent output profit ratio (SOPR) has remained in net profit for its longest stretch of 2026.SOPR reflects the net profitability of spent coins, with 1 representing breakeven. Sustained readings above 1 can support a bullish long-term trend change.Glassnode added that US spot Bitcoin exchange-traded fund (ETF) investors would return to aggregate profit at $86,000. Bitcoin has closed below that level for the past 229 sessions, with ETF investors’ paper losses currently around $3.9 billion.Bitcoin ETF profitability data. Source: Glassnode

Bitcoin (BTC) struggled below $80,000 on Wednesday as attention refocused on the Japanese yen.Key points:Bitcoin saw further macro headwinds as US-Iran strikes pushed Brent crude oil above $100 per barrel.The Japanese yen continued to trade around 153 per dollar, its highest levels since February as yen shorts stayed near record highs.US Treasury Secretary Scott Bessent hinted at further interventions in yen currency markets to come.Bitcoin lacks momentum as Iran strikes sour risk-asset moodData from TradingView showed the local upside in the BTC/USD pair reversing as it attempted to revisit the $80,000 mark. BTC is currently down by around 0.4% on the day. BTC/USD one-hour chart. Source: Cointelegraph/TradingViewUS stocks also drifted lower at the Wall Street open, fueled by fresh US strikes on Iranian oil tankers. The tensions helped send oil prices to new three-month highs, building on gains from the day prior. At the time of writing, WTI crude traded above $96 per barrel, while Brent crude surged above $101 per barrel for the first time since late July.CFDs on Brent crude oil one-day chart. Source: Cointelegraph/TradingViewTraders also eyed fresh developments in the yen as Japan’s currency hit its highest levels against the dollar since February. It is currently at $0.0065, up 6.5% since the start of August.JPY/USD one-day chart. Source: Cointelegraph/TradingViewPreviously, Cointelegraph reported on repeated joint interventions in foreign exchange markets by Japan and the US, which resulted in the rapid strengthening. The yen’s gains continued despite speculation that Washington may keep Japan from selling US Treasuries as part of future interventions.Yen short interest lingers near record highsCiting data from Bloomberg on Wednesday, Barchart flagged record yen short positioning at the start of September, with the total hovering above 5 trillion yen. Related: Bitcoin SOPR metric sees longest profit run of 2026 as new analysis challenges bear marketJapanese yen short positioning. Source: Barchart on X.comIn subsequent commentary, Charu Chanana, chief investment strategist at Saxo, told Reuters that the yen’s continued strength would have implications for these shorts as part of an unwinding of the yen carry trade. The USD/JPY pair is key for liquidity conditions that could ultimately impact crypto markets.“The carry trade is vulnerable because this unwind is happening before the BOJ has even delivered its expected hike,” she said. “Some yen shorts have already been cut, but positioning still looks sizeable, so further yen strength can turn a gradual reduction in leverage into a much faster, self-reinforcing unwind.”The risk was exacerbated by the Bank of Japan’s anticipated 0.25% interest-rate hike at its next meeting on Sept. 28.Last month, US Treasury Secretary Scott Bessent suggested that the door was open to future yen intervention operations. This week, he doubled down on those hints, appearing to dare short traders to bet against central banks.“When we intervene with the Japanese yen, I have pretty good insight into what the Bank of Japan is going to do, what Japanese policymakers are going to do. I have asymmetric information. I am the house now,” he said in an event at Southern Methodist University in Texas on Tuesday, quoted by the Financial Times. 

Bitcoin (BTC) is breaking with typical bear-market behavior as a classic onchain metric puts in its longest bullish streak of 2026.Key points:Bitcoin’s SOPR metric has stayed above its breakeven point of 1 for three full weeks, its longest stint in 2026.Analysis suggests that UTXO profitability is reflecting a return to bull-market conditions.David Puell says SOPR must stay bullish for longer, seeing more BTC price downside to come.SOPR data repeats early bull-market activity Data from crypto analytics platform CryptoQuant shows that the spent output profit ratio (SOPR) has now been above its breakeven level of 1 since Aug. 19. SOPR measures the extent to which coins moving onchain do so at a higher or lower price compared to the previous transaction. The metric, which generally moves in a tight range around 1, currently measures 1.002. Values above 1 indicate that coins are mostly being moved in profit — a sign of overall bullish market momentum. This signal has now endured for three weeks, marking the longest stretch of bullish SOPR of 2026 so far.Bitcoin SOPR chart. Source: CryptoQuantSOPR can be broken down by wallet cohort to differentiate profitability between newer and older investors. Commenting on SOPR readings for short-term holders (STHs), wallets holding a UTXO without selling for up to six months, onchain analytics suite Checkonchain added to hopes that Bitcoin is staging a long-term bullish recovery.“In bear markets, rallies back into profit tend to get sold. In bull markets, short sharp moves below break-even tend to become buy-the-dip setups. The current structure is starting to look more like those early bull-market recoveries,” it told X followers at the weekend.Bitcoin STH-SOPR data. Source: Checkonchain on X.comPuell retains Bitcoin price “downside risk” despite SOPR recoveryDespite BTC/USD holding a local range around $80,000 while the SOPR profitability streak continues, the pair could still hit new macro lows this cycle, one of the industry’s best-known analysts warns.Related: New Bitcoin whales spark sell-side risk as unrealized gains hit $9BIn an interview with CryptoQuant on Sept. 4, ARK Invest portfolio manager David Puell, creator of the Puell multiple BTC price indicator, said that more evidence was needed to assume that the next bear-market floor is already in.Asked about how Bitcoin’s 25% August upside could play out going into Q4, Puell suggested that further upside was the less likely outcome.“In our view, as of now, we leave it as a downside risk,” he said.Puell singled out SOPR signals as a key prerequisite for changing his long-term bias, stating that the metric needs to remain above 1 for an extended period, with investors “realizing profits consistently without price going back to a new low.” Bitcoin must also start putting in series of higher highs and higher lows — a pattern that Cointelegraph reported is still absent on weekly time frames. In late August, CryptoQuant CEO Ki Young Ju described the bear market as already “over” on the back of the latest readings from its proprietary Bull/Bear Market Cycle Indicator.

Bitcoin (BTC) dipped below $78,000 at Tuesday’s Wall Street open as risk assets fell on renewed Middle East tensions.Key points:Bitcoin briefly dropped under $78,000 for the first time since Sept. 3, following downside pressure on US equities.WTI crude oil hit three-month highs near $95 per barrel on renewed military strikes in the Middle East.Bitcoin needs to hold $78,300 to avoid a repeat of its May breakdown, analysis warns.Bitcoin, stocks fall as Middle East woes spark oil surgeData from TradingView showed BTC/USD dropping as low as $77,600 before a modest rebound, its lowest levels since Sept. 3.BTC/USD one-hour chart. Source: Cointelegraph/TradingViewNews of Houthi strikes on Saudi Arabian cities and oil infrastructure pressured US stocks at the start of the first trading session after the Labor Day holiday. The S&P 500 and tech-heavy Nasdaq Composite Index were down by 0.5% and 0.4%, respectively, at the time of writing.S&P 500 one-day chart. Source: Cointelegraph/TradingViewOil prices showed a more pronounced reaction to the events, with WTI crude surging toward $95 per barrel, its highest since June 8. Brent crude targeted the $100 mark for the first time since July 24.CFDs on US WTI crude oil one-day chart. Source: Cointelegraph/TradingViewCommenting on a concurrent record rise in US diesel prices, trading resource The Kobeissi Letter noted that “inflation expectations continue to mount as a result.” As Cointelegraph reported, this has been especially apparent in the Consumer Price Index (CPI), an inflation gauge which is again due for release on Friday.In a Truth Social post on Monday, US president Donald Trump downplayed the oil spike, pledging lower prices in the future.“Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon,” he wrote.Analysis shows BTC price copying failed May breakoutDiscussing current BTC price action, trader and analyst Rekt Capital struck a cautious tone, drawing comparisons to Bitcoin’s failed May breakout.Related: New Bitcoin whales spark sell-side risk as unrealized gains hit $9BAt the time, BTC/USD reached $82,800 before reversing, then consolidating at $78,300 and eventually dropping to new macro lows near $57,000. “The retest of ~$78300 is now in progress,” he noted in a post on X.BTC/USD one-week chart. Source: Rekt Capital on X.comShould the current zone fail to hold as support, BTC/USD would seal another lower high in a series stretching back to October 2025, keeping its 2026 bear market firmly in place.“Ultimately, a Weekly Close below $78300 followed by a bearish retest just like in early May would likely confirm a breakdown,” Rekt Capital argued in separate analysis on X.

Crypto fund flows are becoming increasingly sensitive to changes in the US interest-rate outlook, with CoinShares arguing that Federal Reserve policy remains a key barrier to Bitcoin (BTC) breaking above $80,000 despite continued investor demand for crypto.In his latest market update, CoinShares head of research James Butterfil argued that “Bitcoin is trading like gold again, but the Fed still sets the ceiling” at around $80,000.That sensitivity was evident after Fed Chair Kevin Warsh’s speech at Jackson Hole. Warsh said progress on inflation had been modest and that price pressures were not easing quickly enough to give the central bank’s policy makers the confidence inflation was returning to its 2% target. Roughly $100 million exited digital asset investment products immediately after the speech, as markets sharply increased the probability of a September rate hike.Flows reversed over the following week, reaching $1 billion by Sept. 4. The turnaround coincided with comments from Fed Governor Christopher Waller, who pointed to recent signs of “disinflation” and said he was inclined to keep rates steady in September if upcoming inflation data showed further progress.“Investors are not exiting the asset class,” Butterfill wrote. “They are trading the rate path.”As of Monday, Fed Funds futures prices implied a roughly 60% chance of a rate hike following next week’s Federal Open Market Committee (FOMC) meeting, according to CME Group.Markets are now pricing in a 25 basis-point rate hike on Sept. 16. Source: CME GroupThe movements suggest that Bitcoin and broader digital asset markets remain highly sensitive to shifts in liquidity and monetary policy. Easier financial conditions have historically supported crypto and other risk assets.Related: Crypto Biz: AI took a back seat when Bitcoin started climbingTreasury buybacks add to liquidity backdropCoinShares’ assessment comes against the backdrop of a strong rebound in Bitcoin and the broader digital asset market last month, when the US Treasury announced plans to double certain long-dated bond buybacks from $2 billion to $4 billion per operation. Bitcoin climbed from the low $60,000s to above $80,000 during the month. The expanded buyback program is expected to run from Sept. 9 through Nov. 4.“Around the Treasury announcement we also saw equity sell-offs and shifts across the yield curve, layered on top of the ongoing noise from the Iran war — oil and equities swinging depending on whether or not people are feeling optimistic about diplomacy on any given day,” wrote 21shares co-founder Ophelia Snyder in her Substack newsletter last week.“Taken together, these factors suggest to me that the current Bitcoin rally may have less to do with crypto-specific catalysts and more to do with growing interest in de-risking exposure to the US specifically,” she added.The move reinforced the market’s focus on liquidity conditions and prompted Standard Chartered to forecast that Bitcoin could reach $100,000 before the end of the year.Related: Strategy’s $66B Bitcoin machine hinges on capital markets, not BTC price: Report

Bitcoin (BTC) drifted lower on Monday as a low-liquidity environment erased the weekend’s gains above $80,000.Key points:Bitcoin dips 2% below $80,000 after its highest weekly close since the start of May.Traders are in wait-and-see mode ahead of the week’s key volatility catalyst in the form of US inflation data.Analysis praises Bitcoin’s “resilience” as a narrow range holds since mid-August. Bitcoin needs US inflation catalyst: AnalysisData from TradingView showed BTC/USD down nearly 2% on the day at the time of writing. This price action comes after its first weekly close above $80,000 since early May.BTC/USD one-hour chart. Source: Cointelegraph/TradingViewWith US markets closed for the Labor Day holiday, thinner order books increased the chances of sudden moves to target liquidity both above and below the spot price. Data from CoinGlass showed liquidations evenly split between long and short positions over the past 24 hours, with the cross-crypto total at $178 million. Crypto liquidation history (screenshot). Source: CoinGlassLiquidity thickened over the course of Monday, with concentrations at $80,500 and $78,800 providing nearby short-term targets.Crypto liquidation heatmap. Source: CoinGlassIn comments, trading company QCP Capital flagged declining overall volatility, suggesting that traders required external catalysts. These are due in the form of US inflation data on Thursday and Friday, which is likely to impact market expectations for interest-rate hikes by the Federal Reserve.“Near-term volatility compression, despite approaching catalysts, reflects a market waiting for clarity rather than pricing in strong directional views,” QCP wrote in its latest analysis. It added that the “market is positioned for a directional break once the inflation data arrives.”BTC price “resilience” draws attentionDespite moving in a confined range since Aug. 21, BTC/USD offered bullish signals and held the majority of its 25% gains from earlier last month. Related: Here’s what happened in crypto todayBTC/USD one-day chart. Source: Cointelegraph/TradingViewIn comments sent to Cointelegraph, Ryan Lee, chief analyst at Bitget, noted that Bitcoin had digested last week’s US macro volatility trigger, which was a surprise uptick in nonfarm payrolls numbers.“Bitcoin’s resilience is notable because stronger employment would normally put upward pressure on yields and the dollar, creating a tougher environment for risk assets,” he said. “The market’s ability to absorb that repricing suggests investors are not treating a potential Fed hike as the only factor driving Bitcoin at current levels.”As Cointelegraph reported, the US spot Bitcoin exchange-traded funds (ETFs) also remain on the radar following Thursday’s $730 million net inflows. This was the cohort’s highest single-day tally since January.

Zcash (ZEC) climbed to its highest price since 2016, extending a rally that has pushed the privacy-focused cryptocurrency’s market capitalization above $20 billion.ZEC reached $1,249.28 before retreating to about $1,195 on Monday, according to CoinGecko data. The token gained about 45% over the past week and 138% over 30 days.The rally leaves Zcash below its launch-era record. CoinGecko lists an all-time high of $3,191.93 on Oct. 28, 2016, when only a small supply of tokens was available.Zcash allows users to choose between public and “shielded” transactions. The latter uses zero-knowledge proofs to verify payments without revealing the sender, recipient or transaction amount.“For users that prioritize privacy, this could become a ‘must have’ feature,” Grayscale’s head of research, Zach Pandl, said in an Aug. 31 analysis.Pandl said that AI could increase demand for financial privacy by making it easier to link public blockchain transactions to users’ identities.Zcash has been on a tear since Grayscale converted its existing Zcash Trust into an exchange-traded fund. The product, trading under the ticker ZCSH, began trading on NYSE ARCA on Aug. 25, giving investors exposure to ZEC through brokerage accounts.The ETF closed Friday at $83.77 a share, with $463.2 million in assets under management, according to the fund’s website. US markets are closed Monday for the Labor Day holiday.Related: Grayscale says Zcash can challenge Bitcoin’s network effects as privacy demand growsThis article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.